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					SOUTH CAROLINA
AUTO POLICY




Form 9610D SC (09/06)
version 2.0
                       IMPORTANT NOTICE

IN ADDITION TO THE INSURANCE COVERAGE REQUIRED BY LAW TO PRO­
TECT YOU AGAINST A LOSS CAUSED BY AN UNINSURED MOTORIST, IF
YOU HAVE PURCHASED LIABILITY INSURANCE COVERAGE THAT IS HIGH­
ER THAN THAT REQUIRED BY LAW TO PROTECT YOU AGAINST LIABILITY
ARISING OUT OF THE OWNERSHIP, MAINTENANCE, OR USE OF THE MOTOR
VEHICLES COVERED BY THIS POLICY, AND YOU HAVE NOT ALREADY PUR­
CHASED UNINSURED MOTORIST COVERAGE EQUAL TO YOUR LIABILITY IN­
SURANCE COVERAGE:

1. YOUR UNINSURED AND UNDERINSURED MOTORIST INSURANCE COV­
   ERAGE HAS INCREASED TO THE LIMITS OF YOUR LIABILITY COVERAGE
   AND THIS INCREASE WILL COST YOU AN EXTRA PREMIUM CHARGE;
   AND

2. YOUR TOTAL PREMIUM CHARGE FOR YOUR MOTOR VEHICLE INSUR­
   ANCE COVERAGE WILL INCREASE IF YOU DO NOT NOTIFY YOUR AGENT
   OR INSURER OF YOUR DESIRE TO REDUCE COVERAGE WITHIN TWENTY
   DAYS OF THE MAILING OF THE POLICY OR THE PREMIUM NOTICE, AS
   THE CASE MAY BE;

3. IF THIS IS A NEW POLICY AND YOU HAVE ALREADY SIGNED A WRITTEN
   REJECTION OF SUCH HIGHER LIMITS IN CONNECTION WITH IT, PARA­
   GRAPHS (1) AND (2) OF THIS NOTICE DO NOT APPLY.




                               
                                                                     CONTENTS

INSURING AGREEMENT .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .1

GENERAL DEFINITIONS .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .1

PART I ­ LIABILITY TO OTHERS
 . Insurng .Agreement . .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .2
 . Addtonal .Definton  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .3
 . Addtonal .Payments .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .3
 . Exclusons . .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .3
 . Lmts .of .Lablty .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .5
 . Fnancal .Responsblty .Laws .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .6
 . Other .Insurance  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .6
 . Out-of-State .Coverage .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .6
 . Arbtraton .of .Property .Damage .Lablty .Clams .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .6

PART II ­ MEDICAL PAYMENTS COVERAGE
 . Insurng .Agreement . .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .6
 . Addtonal .Defintons  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .7
 . Exclusons . .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .7
 . Lmts .of .Lablty .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .8
 . Unreasonable .or .Unnecessary .Medcal .Expenses .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .9
 . Other .Insurance  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .9

PART III ­ UNINSURED/UNDERINSURED .MOTORIST COVERAGE
 . Insurng .Agreement .- .Unnsured .Motorst .Coverage . .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .9
 . Insurng .Agreement .- .Undernsured .Motorst .Coverage .  .  .  .  .  .  .  .  .  .  .  .  .  .  .10
 . Notce .Requrement  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .10
 . Addtonal .Defintons  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .10
 . Exclusons . .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .12
 . Lmts .of .Lablty .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .13
 . Other .Insurance  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .15
 . Arbtraton .for .Bodly .Injury .Clams .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .15
 . Arbtraton .for .Property .Damage .Clams .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .15




                                                                                 
PART IV ­ DAMAGE TO A VEHICLE
 . Insurng .Agreement .- .Collson .Coverage .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .16
 . Insurng .Agreement .- .Comprehensve .Coverage .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .16
 . Insurng .Agreement .- .Addtonal .Custom .Parts .or .Equpment .Coverage  .  .17
 . Insurng .Agreement .- .Rental .Rembursement .Coverage  .  .  .  .  .  .  .  .  .  .  .  .  .  .17
 . Insurng .Agreement .- .Loan/Lease .Payoff .Coverage .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .18
 . Addtonal .Defintons  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .18
 . Exclusons . .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .19
 . Lmts .of .Lablty .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .20
 . Payment .of .Loss .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .21
 . No .Benefit .to .Balee  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .22
 . Loss .Payable .Clause  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .22
 . Other .Sources .of .Recovery . .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .22
 . Apprasal .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .23

PART V ­ ROADSIDE ASSISTANCE COVERAGE
 . Insurng .Agreement . .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .23
 . Addtonal .Defintons  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .23
 . Exclusons . .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .24
 . Unauthorzed .Servce .Provder .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .24
 . Other .Insurance  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .24

PART VI ­ DUTIES IN CASE OF AN ACCIDENT OR LOSS .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .25

PART VII ­ GENERAL PROVISIONS
 .   Polcy .Perod .and .Terrtory  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .25
 .   Changes .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .26
 .   Duty .to .Report .Changes .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .26
 .   Settlement .of .Clams . .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .26
 .   Terms .of .Polcy .Conformed .to .Statutes . .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .27
 .   Transfer . .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .27
 .   Fraud .or .Msrepresentaton . .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .27
 .   Payment .of .Premum .and .Fees  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .27
 .   Cancellaton  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .28
 .   Cancellaton .Refund .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .29
 .   Nonrenewal . .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .29
 . . Automatc .Termnaton . .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .29
 . . Legal .Acton .Aganst .Us  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .30
 .   Our .Rghts .to .Recover .Payment .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .30
 .   Jont .and .Indvdual .Interests  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .31
 .   Bankruptcy  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .31




                                                                                   
                             SOUTH CAROLINA AUTO POLICY

                                   INSURING AGREEMENT

In .return .for .your payment .of .the .premum, .we .agree .to .nsure .you .subject .to .all .the .
terms, .condtons, .and .lmtatons .of .ths .polcy . .We .wll .nsure .you for .the .coverages .
and .the .lmts .of .lablty .shown .on .ths .polcy’s .declarations page . .Your polcy .conssts .
of .the .polcy .contract, .your nsurance .applcaton, .the .declarations page, .and .all .en-
dorsements .to .ths .polcy .

                                   GENERAL DEFINITIONS

The .followng .defintons .apply .throughout .the .polcy . .Defined .terms .are .prnted .n .bold-
face .type .and .have .the .same .meanng .whether .n .the .sngular, .plural, .or .any .other .
form .
      “Additional auto” .means .an .auto you .become .the .owner .of .durng .the .polcy .
1 . .  .
      perod .that .does .not .permanently .replace .an .auto .shown .on .the .declarations
      page .f:
 .    a . . we .nsure .all .other .autos you .own;
      b . . the .additional auto .s .not .covered .by .any .other .nsurance .polcy;
 .           .
      c . . you .notfy .us .wthn .30 .days .of .becomng .the .owner .of .the .additional auto; .
            and
      d . . you .pay .any .addtonal .premum .due .
 .    An .additional auto .wll .have .the .broadest .coverage .we .provde .for .any .auto .
       .
      shown .on .the .declarations page . .If .you .ask .us to .nsure .an .additional auto .
      more .than .30 .days .after you become .the .owner, .any .coverage .we .provde .wll .
      begn .at .the .tme .you .request .coverage . .
2 . . “Auto” .means .a .land .motor .vehcle:
 .    a . . of .the .prvate .passenger, .pckup .body, .or .cargo .van .type;
 .    b . . desgned .for .operaton .prncpally .upon .publc .roads;
 .    c . . wth .at .least .four .wheels; .and
 .           .
      d . . wth .a .gross .vehcle .weght .ratng .of .12,000 .pounds .or .less, .accordng .to .the .
            manufacturer’s .specficatons .
 .    However, .“auto” .does .not .nclude .step-vans, .parcel .delvery .vans, .or .cargo .cut-
       .
      away .vans .or .other .vans .wth .cabs .separate .from .the .cargo .area .
      “Auto business” .means .the .busness .of .sellng, .leasng, .reparng, .parkng, .stor-
3 . .  .
      ng, .servcng, .delverng, .or .testng .vehcles .
      “Bodily injury” .means .bodly .harm, .sckness, .or .dsease, .ncludng .death .that .re-
4 . .  .
      sults .from .bodly .harm, .sckness, .or .dsease .
5 . . “Covered auto” .means:
 .           .
      a . . any .auto or .trailer shown .on .the .declarations page for .the .coverages .ap-
            plcable .to .that .auto or .trailer;
 .    b . . any .additional auto;
 .    c . . any .replacement auto; .or
 .    d . . a .trailer owned .by .you .


                                                  1
       “Declarations page” .means .the .document .showng .your .coverages, .lmts .of .la-
6 . .  .
       blty, .covered autos, .premum, .and .other .polcy-related .nformaton . .The .decla­
       rations page . may . also . be . referred . to . as . the .Auto . Insurance . Coverage . Sum-
       mary .
7 . . “Occupying” .means .n, .on, .enterng, .or .extng .
       “Property damage” .means .physcal .damage .to, .destructon .of, .or .loss .of .use .of, .
8 . .  .
       tangble .property .
       “Relative” .means .a .person .resdng .n .the .same .household .as .you, .and .related .to .
9 . .  .
       you by .blood, .marrage, .or .adopton, .and .ncludes .a .ward, .stepchld, .or .foster .
       chld . .Your unmarred .dependent .chldren .temporarly .away .from .home .wll .qualfy .
       as .a .relative .f .they .ntend .to .contnue .to .resde .n .your household .
       “Replacement auto” .means .an .auto .that .permanently .replaces .an .auto .shown .
10 . .  .
       on .the .declarations page . .A .replacement auto .wll .have .the .same .coverage .as .
       the .auto .t .replaces .f .the .replacement auto .s .not .covered .by .any .other .nsurance .
       polcy . .However, .f .the .auto .beng .replaced .had .coverage .under .Part .IV .- .Damage .
       To .A .Vehcle, .such .coverage .wll .apply .to .the .replacement auto .only .durng .the .
       first .30 .days .after you .become .the .owner .unless .you .notfy .us .wthn .that .30-day .
       perod .that .you want .us .to .extend .coverage .beyond .the .ntal .30 .days . .If .the .auto .
       beng .replaced .dd .not .have .coverage .under .Part .IV .- .Damage .To .A .Vehcle, .such .
       coverage .may .be .added, .but .the .replacement auto .wll .have .no .coverage .under .
       Part .IV .untl .you .notfy .us .of .the .replacement auto .and .ask .us .to .add .the .cov-
       erage .
       “Trailer” .means .a .non-motorzed .traler, .ncludng .a .farm .wagon .or .farm .mplement, .
11 . .  .
       desgned .to .be .towed .on .publc .roads .by .an .auto .and .not .beng .used:
 .     a . . for .commercal .purposes;
 .     b . . as .an .office, .store, .or .for .dsplay .purposes; .or .
 .     c . . as .a .passenger .conveyance .
       “We”, .“us”, .and .“our” .mean .the .underwrtng .company .provdng .the .nsurance, .as .
12 . .  .
       shown .on .the .declarations page .
13 . . “You” .and .“your” .mean:
 .     a . . a .person .shown .as .a .named .nsured .on .the .declarations page; .and
 .             .
       b . . the .spouse .of .a .named .nsured .f .resdng .n .the .same .household .at .the .tme .
              of .the .loss .

                               PART I ­ LIABILITY TO OTHERS

INSURING AGREEMENT

If .you .pay .the .premum .for .ths .coverage, .we .wll .pay .damages .for .bodily injury and .
property damage for .whch .an .insured person .becomes .legally .responsble .because .
of .an .accdent .

Damages .nclude .prejudgment .nterest .awarded .aganst .an .insured person .

We .wll .settle .or .defend, .at .our .opton, .any .clam .for .damages .covered .by .ths .Part .I .


                                                   2
ADDITIONAL DEFINITION

When .used .n .ths .Part .I:
“Insured person” .means:
      you .or .a .relative wth .respect .to .an .accdent .arsng .out .of .the .ownershp, .man-
a . .  .
      tenance, .or .use .of .an .auto or .trailer; .
      any .person .wth .respect .to .an .accdent .arsng .out .of .that .person’s .use .of .a .cov­
b . .  .
      ered auto wth .the .permsson .of you or .a relative;
      any .person .or .organzaton .wth .respect .only .to .vcarous .lablty .for .the .acts .or .
c . .  .
      omssons .of .a .person .descrbed .n .a .or .b .above; .and
      any .Addtonal .Interest .shown .on .the .declarations page .wth .respect .only .to .ts .
d . .  .
      lablty .for .the .acts .or .omssons .of .a .person .descrbed .n .a .or .b .above .

ADDITIONAL PAYMENTS

In .addton .to .our .lmt .of .lablty, .we .wll .pay .for .an .insured person:
1 . . all .expenses .we .ncur .n .the .settlement .of .any .clam .or .defense .of .any .lawsut;
      nterest .accrung .after .entry .of .judgment, .untl .we .have .pad, .offered .to .pay, .or .
2 . .  .
      deposted .n .court, .that .porton .of .the .judgment .whch .does .not .exceed .our .lmt .of .
      lablty . .Ths .does .not .apply .f .we .have .not .been .gven .notce .of .sut .or .the .op-
      portunty .to .defend .an .insured person; .
      the .premum .on .any .appeal .bond .or .attachment .bond .requred .n .any .lawsut .we .
3 . .  .
      defend . .We .have .no .duty .to .purchase .a .bond .n .an .amount .exceedng .our .lmt .of .
      lablty, .and .we .have .no .duty .to .apply .for .or .furnsh .these .bonds;
      up .to .$250 .for .a .bal .bond .requred .because .of .an .accdent .resultng .n .bodily
4 . .  .
      injury or .property damage .covered .under .ths .Part .I . .We .have .no .duty .to .apply .
      for .or .furnsh .ths .bond; .and
      reasonable .expenses, .ncludng .loss .of .earnngs .up .to .$200 .per .day, .ncurred .at .
5 . .  .
      our .request .

EXCLUSIONS ­ READ THE FOLLOWING EXCLUSIONS CAREFULLY. IF AN
EXCLUSION APPLIES, COVERAGE WILL NOT BE AFFORDED UNDER THIS
PART I.

Coverage .under .ths .Part .I, .ncludng .our duty .to .defend, .wll .not .apply .to .any .insured
person for: .
      bodily injury .or .property damage .arsng .out .of .the .ownershp, .mantenance, .or .
1 . .  .
      use . of . any . vehcle . or . traler . whle . beng . used . to . carry . persons . or . property . for .
      compensaton .or .a .fee, .ncludng, .but .not .lmted .to, .pckup .or .delvery .of .maga-
      znes, .newspapers, .food, .or .any .other .products . .For .damages .arsng .out .of .the .
      ownershp, .mantenance, .or .use .of .a .covered auto, .ths .excluson .apples .only .to .
      those .damages .n .excess .of .the .mnmum .lmt .mandated .by .the .motor .vehcle .
      financal .responsblty .law .of .South .Carolna . .Ths .excluson .does .not .apply .to .
      shared-expense .car .pools;
2 . . any .lablty .assumed .under .any .contract .or .agreement .by .you or .a .relative; .
3 . .  .
      bodily injury .to .an .employee .of .that .insured person .arsng .out .of .or .wthn .the .
                                                        3
       course .of .employment . .Ths .excluson .does .not .apply .to .domestc .employees .f .
       benefits .are .nether .pad .nor .requred .to .be .provded .under .workers’ .compensaton, .
       dsablty .benefits, .or .smlar .laws;
       bodily injury .or .property damage .arsng .out .of .an .accdent .nvolvng .any .vehcle .
4 . .  .
       whle .beng .mantaned .or .used .by .a .person .whle .employed .or .engaged .n .any .
       auto business . .For .damages .arsng .out .of .the .ownershp, .mantenance, .or .use .
       of .a .covered auto, .ths .excluson .apples .only .to .those .damages .n .excess .of .the .
       mnmum .lmt .mandated .by .the .motor .vehcle .financal .responsblty .law .of .South .
       Carolna . .Ths .excluson .does .not .apply .to .you, .a .relative, .or .an .agent .or .employee .
       of .you .or .a .relative, .when .usng .a .covered auto;
       bodily injury or .property damage .resultng .from, .or .sustaned .durng .practce .or .
5 . .  .
       preparaton .for: .
 .             .
       a . . any .pre-arranged .or .organzed .racng, .stuntng, .speed, .or .demolton .contest .
              or .actvty; .or
 .             .
       b . . any .drvng .actvty .conducted .on .a .permanent .or .temporary .racetrack .or .race-
              course;
6 . . bodily injury or .property damage .due .to .a .nuclear .reacton .or .radaton;
7 . . bodily injury or .property damage .for .whch .nsurance: .
 .     a . . s .afforded .under .a .nuclear .energy .lablty .nsurance .contract; .or
 .             .
       b . . would .be .afforded .under .a .nuclear .energy .lablty .nsurance .contract .but .for .
              ts .termnaton .upon .exhauston .of .ts .lmt .of .lablty;
       any .
8 . .  . oblgaton .for .whch .the .Unted .States .Government .s .lable .under .the .Federal .
       Tort .Clams .Act; .
9 . .  .
       bodily injury .or .property damage .caused .by .an .ntentonal .act .of .that .insured
       person, .or .at .the .drecton .of .that .insured person, .even .f .the .actual .njury .or .
       damage .s .dfferent .than .that .whch .was .ntended .or .expected . .For .damages .a-
       rsng .out .of .the .ownershp, .mantenance, .or .use .of .a .covered auto, .ths .excluson .
       apples .only .to .those .damages .n .excess .of .the .mnmum .lmt .mandated .by .the .
       motor .vehcle .financal .responsblty .law .of .South .Carolna;
       property damage .to .any .property .owned .by, .rented .to, .beng .transported .by, .or .n .
10 . .  .
       the .charge .of .that .insured person . .Ths .excluson .does .not .apply .to .a .rented .
       resdence .or .a .rented .garage;
11 . .  .
       bodily injury .to .you .or .a .relative . .For .damages .arsng .out .of .the .ownershp, .
       mantenance, . or . use . of . a . covered auto, . ths . excluson . apples . only . to . those .
       damages .n .excess .of .the .mnmum .lmt .mandated .by .the .motor .vehcle .financal .
       responsblty .law .of .South .Carolna;
       bodily injury or .property damage .arsng .out .of .the ownershp, .mantenance, .or .
12 . .  .
       use .of .any .vehcle .owned .by .you or .furnshed .or .avalable .for .your regular .use, .
       other .than .a .covered auto for .whch .ths .coverage .has .been .purchased; .
       bodily injury or .property damage .arsng .out .of .the .ownershp, .mantenance, .or .
13 . .  .
       use .of .any .vehcle .owned .by .a .relative .or .furnshed .or .avalable .for .the .regular .use .
       of .a .relative, .other .than .a .covered auto for .whch .ths .coverage .has .been .pur-
       chased . .Ths .excluson .does .not .apply .to .your mantenance .or .use .of .such .vehcle;
       bodily injury .or .property damage .arsng .out .of .your or .a .relative’s use .of .a .
14 . .  .
       vehcle, .other .than .a .covered auto, .wthout .the .permsson .of .the .owner .of .the .
       vehcle .or .the .person .n .lawful .possesson .of .the .vehcle;
                                                    4
       bodily injury .or .property damage .arsng .out .of .the .use .of .a .covered auto .whle .
15 . .  .
       leased .or .rented .to .others .or .gven .n .exchange .for .any .compensaton . .Ths .ex-
       cluson .does .not .apply .to .the .operaton .of .a .covered auto by .you .or .a .relative; .
       or
16 . .  .
       bodily injury .or .property damage .caused .by, .or .reasonably .expected .to .result .
       from, .a .crmnal .act .or .omsson .of .that .insured person . .Ths .excluson .apples .
       regardless .of .whether .that .insured person .s .actually .charged .wth, .or .convcted .
       of, . a . crme . . For . purposes . of . ths . excluson, . crmnal . acts . or . omssons . do . not .
       nclude .traffic .volatons .

LIMITS OF LIABILITY

The .lmt .of .lablty .shown .on .the .declarations page .for .lablty .coverage .s .the .most .
we .wll .pay .regardless .of .the .number .of:
1 . . clams .made;
2 . . covered autos;
3 . . insured persons;
4 . . lawsuts .brought;
5 . . vehcles .nvolved .n .the .accdent; .or .
6 . . premums .pad .

If .your .declarations page .shows .a .splt .lmt:
      the .amount .shown .for .“each .person” .s .the .most .we .wll .pay .for .all .damages .due .
1 . .  .
      to .bodily injury .to .one .person .resultng .from .any .one .accdent;
      subject .to .the .“each .person” .lmt, .the .amount .shown .for .“each .accdent” .s .the .
2 . .  .
      most .we .wll .pay .for .all .damages .due .to .bodily injury .sustaned .by .two .or .more .
      persons .n .any .one .accdent; .and
      the .
3 . .  . amount .shown .for .“property .damage” .s .the .most .we .wll .pay .for .the .total .of .all .
      property damage .resultng .from .any .one .accdent .

The .“each .person” .lmt .of .lablty .apples .to .the .total .of .all .clams .made .for .bodily
injury .to .a .person .and .all .clams .of .others .derved .from .such .bodily injury, .ncludng, .
but . not . lmted . to, . loss . of . socety, . loss . of . companonshp, . loss . of . servces, . loss . of .
consortum, .and .wrongful .death .

If . the . declarations page . shows . that . “combned . sngle . lmt” . or . “CSL” . apples, . the .
amount .shown .s .the .most .we .wll .pay .for .the .total .of .all .damages .resultng .from .any .
one .accdent . .However, .wthout .changng .ths .lmt .of .lablty, .we wll .comply .wth .any .
law .that .requres .us to .provde .any .separate .lmts .

The .Lmts .of .Lablty .under .ths .Part .I .shall .not .be .reduced .by .payments .made .under .
Part .II .- .Medcal .Payments .Coverage . .However, .no .one .s .enttled .to .duplcate .pay-
ments .for .the .same .elements .of .damages . .

Any .payment .to .a .person .under .ths .Part .I .wll .be .reduced .by .any .payment .to .that .
person .under .Part .III .- .Unnsured/Undernsured .Motorst .Coverage .
                                                        5
If .multple .auto .polces .ssued .by .us are .n .effect .for .you, .we wll .pay .no .more .than .the .
hghest .lmt .of .lablty .for .ths .coverage .avalable .under .any .one .polcy .

An .auto and .attached .trailer .are .consdered .one .auto . .Therefore, .the .lmts .of .lablty .
wll .not .be .ncreased .for .an .accdent .nvolvng .an .auto that .has .an .attached .trailer .

FINANCIAL RESPONSIBILITY LAWS

When .we .certfy .ths .polcy .as .proof .of .financal .responsblty, .ths .polcy .wll .comply .
wth .the .law .to .the .extent .requred . .The .insured person must .remburse .us f .we .
make .a .payment .that .we .would .not .have .made .f .ths .polcy .was .not .certfied .as .proof .
of .financal .responsblty .

OTHER INSURANCE

If .there .s .any .other .applcable .lablty .nsurance .or .bond, .we .wll .pay .only .our .share .of .
the .damages . .Our .share .s .the .proporton .that our lmt .of .lablty .bears .to .the .total .of .
all .applcable .lmts . .However, .any .nsurance .we .provde .for .a .vehcle .or .traler, .other .
than .a .covered auto, wll .be .excess .over .any .other .collectble .nsurance, .self-nsurance, .
or .bond .

OUT­OF­STATE COVERAGE

If .an .accdent .to .whch .ths .Part .I .apples .occurs .n .any .state, .terrtory, .or .possesson .of .
the .Unted .States .of .Amerca .or .any .provnce .or .terrtory .of .Canada, .other .than .the .one .
n .whch .a .covered auto s .prncpally .garaged, .and .the .state, .provnce, .terrtory, .or .
possesson .has:
      a .financal .responsblty .or .smlar .law .requrng .lmts .of .lablty .for .bodily injury .
1 . .  .
      or .property damage .hgher .than .the .lmts .shown .on .the .declarations page, .ths .
      polcy .wll .provde .the .hgher .lmts; .or
      a .compulsory .nsurance .or .smlar .law .requrng .a .non-resdent .to .mantan .nsur-
2 . .  .
      ance .whenever .the .non-resdent .uses .an .auto .n .that .state, .provnce, .terrtory, .or .
      possesson, .ths .polcy .wll .provde .the .greater .of:
 .    a . . the .requred .mnmum .amounts .and .types .of .coverage; .or
 .    b . . the .lmts .of .lablty .under .ths .polcy .

ARBITRATION OF PROPERTY DAMAGE LIABILITY CLAIMS

Any .party .to .a .dsputed .property damage .lablty .clam .may .submt .the .clam .to .arbtra-
ton .n .accordance .wth .South .Carolna .law .

                        PART II ­ MEDICAL PAYMENTS COVERAGE

INSURING AGREEMENT

If .you .pay .the .premum .for .ths .coverage, .we .wll .pay .the .reasonable .expenses .n-
curred .for .necessary medical services .receved .wthn .three .years .from .the .date .of .a .
                                                     6
motor vehicle .accdent .because .of .bodily injury:
1 . . sustaned .by .an .insured person; .and
2 . . caused .by .that .motor vehicle .accdent .

We, .or .someone .on .our .behalf, .wll .determne:
1 . . whether .the .expenses .for .medical services .are .reasonable; .and
2 . . whether .the .medical services .are .necessary .

ADDITIONAL DEFINITIONS

When .used .n .ths .Part .II:
1 . . “Insured person” .means:
 .    a . . you .or .a .relative:
            () . whle .occupying an .auto; .or
 .     .           when .struck .by .a .motor vehicle .or .a .traler .whle .not .occupying a .self-
            () .  .
                   propelled .motorzed .vehcle; .and
 .           .
      b . . any .other .person .whle .occupying .a .covered auto wth .the .permsson .of
            you or .a relative .
      “Medical services” .means .medcal, .surgcal, .dental, .x-ray, .ambulance, .hosptal, .
2 . .  .
      professonal .nursng, .and .funeral .servces, .and .ncludes .the .cost .of .eyeglasses, .
      hearng .ads, .pharmaceutcals, .orthopedcs .and .prosthetc .devces .
      “Motor vehicle” .means .a .land .motor .vehcle .desgned .for .use .prncpally .on .publc .
3 . .  .
      roads .

EXCLUSIONS ­ READ THE FOLLOWING EXCLUSIONS CAREFULLY. IF AN
EXCLUSION APPLIES, COVERAGE WILL NOT BE AFFORDED UNDER THIS
PART II.

Coverage .under .ths .Part .II .wll .not .apply .to .bodily injury:
      sustaned .by .any .person .whle .occupying a .covered auto whle .t .s .beng .used .
1 . .  .
      to .carry .persons .or .property .for .compensaton .or .a .fee, .ncludng, .but .not .lmted .
      to, .pckup .or .delvery .of .magaznes, .newspapers, .food, .or .any .other .products . .Ths .
      excluson .does .not .apply .to .shared-expense .car .pools;
      arsng .out .of .an .accdent .nvolvng .a .vehcle .whle .beng .mantaned .or .used .by .a .
2 . .  .
      person .whle .employed .or .engaged .n .any .auto business . .Ths .excluson .does .
      not .apply .to .you, .a .relative, .or .an .agent .or .employee .of .you .or .a .relative, .when .
      usng .a .covered auto;
3 . . to .any .person .resultng .from, .or .sustaned .durng .practce .or .preparaton .for: .
 .           .
      a . . any .pre-arranged .or .organzed .racng, .stuntng, .speed, .or .demolton .contest .
            or .actvty; .or
 .           .
      b . . any .drvng .actvty .conducted .on .a .permanent .or .temporary .racetrack .or .race-
            course;
4 . . due .to .a .nuclear .reacton .or .radaton;
5 . . for .whch .nsurance: .
 .    a . . s .afforded .under .a .nuclear .energy .lablty .nsurance .contract; .or

                                                  7
 .            .
       b . . would .be .afforded .under .a .nuclear .energy .lablty .nsurance .contract .but .for .
             ts .termnaton .upon .exhauston .of .ts .lmt .of .lablty;
       for .whch .the .Unted .States .Government .s .lable .under .the .Federal .Tort .Clams .
6 . .  .
       Act;
       sustaned .by .any .person .whle .occupying .any .vehcle or .traler .whle .located .for .
7 . .  .
       use .as .a .resdence .or .premses;
8 . . f .workers’ .compensaton .benefits .are .avalable .for .the .bodily injury;
       sustaned .by .any .person .whle .occupying .or .when .struck .by .any .vehcle .owned .
9 . .  .
       by .you or .furnshed .or .avalable .for .your regular .use, .other .than .a .covered auto
       for .whch .ths .coverage .has .been .purchased;
       sustaned .by .any .person .whle .occupying .or .when .struck .by .any .vehcle .owned .
10 . .  .
       by .a .relative .or .furnshed .or .avalable .for .the .regular .use .of .a .relative, .other .than .
       a .covered auto for .whch .ths .coverage .has .been .purchased . .Ths .excluson .does .
       not .apply .to .you;
       to .you or .a .relative whle .occupying any .vehcle, .other .than .a .covered auto, .
11 . .  .
       wthout .the .permsson .of .the .owner .of .the .vehcle .or .the .person .n .lawful .possesson .
       of .the .vehcle;
       to .any .person .whle .occupying .a .covered auto .whle .leased .or .rented .to .others .
12 . .  .
       or .gven .n .exchange .for .any .compensaton . .Ths .excluson .does .not .apply .to .the .
       operaton .of .a .covered auto .by .you .or .a .relative;
13 . . caused .drectly .or .ndrectly .by:
 .     a . . war .(declared .or .undeclared) .or .cvl .war;
 .            .
       b . . warlke .acton .by .any .mltary .force .of .any .government, .soveregn .or .other .
             authorty .usng .mltary .personnel .or .agents . .Ths .ncludes .any .acton .taken .to .
             hnder .or .defend .aganst .an .actual .or .expected .attack; .or
 .           nsurrecton, .rebellon, .revoluton, .usurped .power, .or .any .acton .taken .by .a .
       c . .  .
             governmental .authorty .to .hnder .or .defend .aganst .any .of .these .acts;
14 . . caused .drectly .or .ndrectly .by:
 .            .
       a . . any .accdental .or .ntentonal .dscharge, .dspersal, .or .release .of .radoactve, .
             nuclear, .pathogenc, .or .posonous .bologcal .materal; .or
 .            .
       b . . any .ntentonal .dscharge, .dspersal, .or .release .of .chemcal .or .hazardous .ma-
             teral .for .any .purpose .other .than .ts .safe .and .useful .purpose; .or
15 . caused .by, .or .reasonably .expected .to .result .from, .a .crmnal .act .or .omsson .of .an .
       insured person . .Ths .excluson .apples .regardless .of .whether .the .insured person .
       s .actually .charged .wth, .or .convcted .of, .a .crme . .For .purposes .of .ths .excluson, .
       crmnal .acts .or .omssons .do .not .nclude .traffic .volatons .

LIMITS OF LIABILITY

The .lmt .of .lablty .shown .on .the .declarations page .for .Medcal .Payments .Coverage .
s .the .most .we .wll .pay .for .each .insured person .njured .n .any .one .accdent, .regardless .
of .the .number .of: .
1 . . clams .made;
2 . . covered autos;
3 . . insured .persons;
4 . . lawsuts .brought;
                                                     8
5 . . vehcles .nvolved .n .the .accdent; .or
6 . . premums .pad .

No .one .wll .be .enttled .to .duplcate .payments .under .ths .polcy .for .the .same .elements .
of .damages .

Any .amount .payable .to .an .insured person .under .ths .Part .II .wll .be .reduced .by .any .
amount .pad .or .payable .for .the .same .expense .under .Part .I .- .Lablty .To .Others .or .Part .
III .- .Unnsured/Undernsured .Motorst .Coverage .

If .multple .auto .polces .ssued .by .us are .n .effect .for .you, .we wll .pay .no .more .than .the .
hghest .lmt .of .lablty .for .ths .coverage .avalable .under .any .one .polcy .

UNREASONABLE OR UNNECESSARY MEDICAL EXPENSES

If .an .insured person ncurs .expenses .for .medical services that .we .deem .to .be .un-
reasonable .or .unnecessary, .we may .refuse .to .pay .for .those .expenses .and .contest .them .

If .the .medcal .servce .provder .sues .the .insured person .because .we refuse .to .pay .
expenses .for .medical services that .we deem .to .be .unreasonable .or .unnecessary, .we
wll .pay .any .resultng .defense .costs, .and .any .resultng .judgment .aganst .the .insured
person, .subject .to .the .lmt .of .lablty .for .ths .coverage . .We wll .choose .the .counsel . .We
wll . also . pay . reasonable . expenses, . ncludng . loss . of . earnngs . up . to . $200 . per . day, .
ncurred .at .our request .

The .insured person .may .not .sue .us for .expenses .for .medical services we deem .to .
be .unreasonable .or .unnecessary .unless .the .insured person .pad .the .entre .dsputed .
amount .to .the .medcal .servce provder .or .the .medcal .servce provder .has .ntated .
collecton .actvty .aganst .the .insured person for .the .unreasonable .or .unnecessary .
expenses .

OTHER INSURANCE

If .there .s .other .applcable .auto .medcal .payments .nsurance, .we .wll .pay .only .our .
share .of .the loss . .Our .share .s .the .proporton .that .our .lmt .of .lablty .bears .to .the .total .
of .all .applcable .lmts . .However, .any .nsurance .we .provde .for .an .insured person
occupying a .vehcle .or .traler, .other .than .a .covered auto, .wll .be .excess .over .any .
other .auto nsurance .provdng .payments .for .medical services .

         PART III ­ UNINSURED/UNDERINSURED MOTORIST COVERAGE

INSURING AGREEMENT ­ UNINSURED MOTORIST COVERAGE

If .you .pay .the .premum .for .ths .coverage, .we wll .pay .for .damages .that .an .insured
person .s .legally .enttled .to .recover .from .the .owner .or .operator .of:
1 . . an .uninsured motor vehicle .because .of .bodily injury:
 .    a . . . sustaned .by .an .insured person;
                                                      9
 .    b . . caused .by .an .accdent; .and
 .           .
      c . . arsng .out .of .the .ownershp, .mantenance, .or .use .of .an .uninsured motor
            vehicle; .or
2 . . an .uninsured motor vehicle .because .of .property damage: .
 .    a . . caused .by .an .accdent; .and
 .           .
      b . . arsng .out .of .the .ownershp, .mantenance, .or .use .of .an .uninsured motor
            vehicle .

INSURING AGREEMENT ­ UNDERINSURED MOTORIST COVERAGE

If .you .pay .the .premum .for .ths .coverage, .we wll .pay .for .damages .that .an .insured
person .s .legally .enttled .to .recover .from .the .owner .or .operator .of:
1 . . an .underinsured motor vehicle .because .of .bodily injury:
 .    a . . sustaned .by .an .insured person; .
 .    b . . caused .by .an .accdent; .and
 .           .
      c . . arsng .out .of .the .ownershp, .mantenance, .or .use .of .an .underinsured motor
            vehicle; .or
2 . . an .underinsured motor vehicle .because .of .property damage:
 .    a . . caused .by .an .accdent; .and
 .           .
      b . . arsng .out .of .the .ownershp, .mantenance, .or .use .of .an .underinsured motor
            vehicle .

We .wll .pay .under .ths .Part .III .only .after .the .lmts .of .lablty .under .all .applcable .lablty .
bonds .and .polces .have .been .exhausted .by .payment .of .judgments .or .settlements .

NOTICE REQUIREMENT

Any .judgment .or .settlement .for .damages .aganst .an .owner .or .operator .of .an .unin­
sured motor vehicle .or .an underinsured motor vehicle .that .arses .out .of .a .lawsut .
brought .for .whch .we .have .not .receved .notce .n .accordance .wth .South .Carolna .law .
s .not .bndng .on .us .

ADDITIONAL DEFINITIONS

When .used .n .ths .Part .III:
1 . . “Insured person” .means:
 .    a . . you .or .a .relative;
            any .person .whle .operatng .a covered auto wth .the .permsson .of .you .or .a .
      b . .  .
            relative;
 .    c . . any .person .occupying, .but .not .operatng, .a covered auto; .and
 .           .
      d . . any .person .who .s .enttled .to .recover .damages .covered .by .ths .Part .III .because .
            of .bodily injury .sustaned .by .a .person .descrbed .n .a, .b, .or .c .above .
      “Underinsured motor vehicle” .means .a .land .motor .vehcle .or .traler .of .any .type .
2 . .  .
      to .whch .lablty .nsurance .or .a .bond .apples .at .the .tme .of .the .accdent wth .lm-
      ts .of .lablty .that .equal .or .exceed .the .mnmum .amounts .requred .by .the .South .

                                                       10
      Carolna .motor .vehcle .financal .responsblty .law, .but .whch .are .less .than .the .a-
      mount .of .the .damages .sustaned .by .the .insured person .n .the .accdent .
 .    An .“underinsured motor vehicle” .does .not .nclude .any .vehcle .or .equpment:
 .    a . . owned .by .any .governmental .unt .or .agency, .except .when:
 .     .    () . operated .by .a .person .wthout .proper .authorzaton; .or
 .     .            a .cause .of .acton .aganst .that .governmental .unt .or .agency .arsng .out .
            () .  .
                    of .a .motor .vehcle .accdent .s .barred .by .the .Tort .Clams .Act .of .South .
                    Carolna;
 .    b . . operated .on .rals .or .crawler .treads;
 .    c . . desgned .manly .for .use .off .publc .roads, .whle .not .on .publc .roads;
 .    d . . whle .located .for .use .as .a .resdence .or .premses; .or
 .    e . . that .s .an .uninsured motor vehicle .
3 . . “Uninsured motor vehicle” .means .a .land .motor .vehcle .or .traler .of .any .type:
 .           .
      a . . to .whch .no .lablty .bond, .cash .depost, .securty, .or .lablty .polcy .n .at .least .the .
            amounts .of coverage .requred .by .South .Carolna .law .apples .at .the .tme .of .the .
            accdent;
 .           .
      b . . to .whch .a .lablty .bond .or .polcy .apples .at .the .tme .of .the .accdent, .but .the .
            bondng .or .nsurng .company:
 .     .    () . denes .coverage;
 .     .    () . s .or .becomes .nsolvent;
 .     .    () . s .n .delnquency .proceedngs, .suspenson, .or .recevershp; .or
 .     .            s .financally .unable .to .fully .satsfy .a .judgment .rendered .n .favor .of .an .in­
            (v) .  .
                    sured person;
 .           .
      c . . to .whch .a .lablty .bond .or .polcy .apples .at .the .tme .of .the .accdent, .but .ts .
            lmt .of .lablty .s .less .than .the .mnmum .lmt .of .lablty .specfied .by .the .finan-
            cal .responsblty .law .of .the .state .n .whch .the .covered auto .s .prncpally .ga-
            raged; .or
 .           .
      d . . that .s .a .ht-and-run .vehcle .whose .owner .or .operator .cannot .be .dentfied .and .
            whch .causes .an .accdent .resultng .n .bodily injury .to .an .insured person, .or .
            property damage .to .the .property .of .an .nsured .person, .provded:
 .     .    () .  .the .insured person, .or .someone .on .hs .or .her .behalf, .reports .the .acc-
                    dent .to .the .polce .or .other .cvl .authorty .wthn .24 .hours .or .as .soon .as .
                    practcable .after .the .accdent; .and
 .     .            f .there .has .been .no .physcal .contact .between .the .vehcle .operated .by .
            () .  .
                    the .undentfied .operator .and .the insured person, .or .a .vehcle .occuped .
                    by .the .insured person, .there .must .be .ndependent .corroboratve .ev-
                    dence .by .a .wtness .to .the .accdent who .executes .a .sgned .affidavt .
                    attestng .to .the .truth .of .the .accdent .to .prove .that .the .bodily injury .or .
                    property damage .was .proxmately .caused .by .the .neglgence .or .nten-
                    tonal .actons .of .the .undentfied .operator .of .the .motor .vehcle . .The .tes-
                    tmony .of .the .owner .or .operator .of .the .covered auto .shall .not .consttute .
                    ndependent .corroboratve .evdence . .No .recovery .wll .be .provded .under .
                    ths .Part .III .f .the insured person .was .neglgent .n .falng .to .determne .the .
                    dentty .of .the .other .motor .vehcle .and .ts .drver .at .the .tme .of .the .acc-
                    dent .


                                                       11
 .   An .“uninsured motor vehicle” .does .not .nclude .any .vehcle .or .equpment:
 .          .
     a . . owned .or .operated .by .a .self-nsurer .under .any .applcable .motor .vehcle .law, .
           except .a .self-nsurer .that:
 .    .    () . s .or .becomes .nsolvent; .or
 .    .    () . fals .to .qualfy .as .a .self-nsurer .under .South .Carolna .law;
 .   b . . owned .by .any .governmental .unt .or .agency, .except .when:
 .    .    () . operated .by .a .person .wthout .proper .authorzaton; .or
 .    .           a .cause .of .acton .aganst .that .governmental .unt .or .agency .arsng .out .
           () .  .
                  of .a .motor .vehcle .accdent .s .barred .by .the .Tort .Clams .Act .of .South .
                  Carolna;
 .   c . . operated .on .rals .or .crawler .treads;
 .   d . . desgned .manly .for .use .off .publc .roads, .whle .not .on .publc .roads;
 .   e . . whle .located .for .use .as .a .resdence .or .premses; .or .
 .   f . .  .that .s .an .underinsured motor vehicle .

EXCLUSIONS ­ READ THE FOLLOWING EXCLUSIONS CAREFULLY. IF AN
EXCLUSION APPLIES, COVERAGE WILL NOT BE AFFORDED UNDER THIS
PART III.

Coverage .under .ths .Part .III .wll .not .apply:
1 . . to .bodily injury .sustaned .by .any .person .whle .usng .or .occupying:
 .           .
      a . . a .covered auto .whle .beng .used .to .carry .persons .or .property .for .compen-
            saton .or .a .fee, .ncludng, .but .not .lmted .to, .pckup .or .delvery .of .magaznes, .
            newspapers, .food, .or .any .other .products . .Ths .excluson .does .not .apply .to .
            shared-expense .car .pools; .or
 .           .
      b . . any .motor .vehcle .owned by .you .or .a .relative .f .unnsured .motorst .coverage .
            or .undernsured .motorst .coverage, .as .the .case .may .be, .has .not .been .pur-
            chased .for .that .motor .vehcle;
      to .
2 . .  . bodily injury .sustaned .by .you or .a .relative whle .usng .any .vehcle, .other .than .
      a .covered auto, .wthout .the .permsson .of .the .owner .of .the .vehcle .or .the .person .
      n .lawful .possesson .of .the .vehcle; .or
      drectly .or .ndrectly .to .benefit .any .nsurer .or .self-nsurer .under .any .of .the .followng .
3 . .  .
      or .smlar .laws:
 .    a . . workers’ .compensaton .law; .or
 .    b . . dsablty .benefits .law .

Coverage .under .ths .Part .III .wll .not .apply .to .property damage:
      sustaned .whle .a .covered auto .s .beng .used .to .carry .persons .or .property .for .
1 . .  .
      compensaton .or .a .fee, .ncludng, .but .not .lmted .to, .delvery .of .magaznes, .news-
      papers, . food . or . any . other . products . . Ths . excluson . does . not . apply . to . shared-
      expense .car .pools;
2 . . resultng .from, .or .sustaned .durng .practce .or .preparaton .for:
 .           .
      a . . any .pre-arranged .or .organzed .racng, .stuntng, .speed, .or .demolton .contest .
            or .actvty; .or
 .           .
      b . . any .drvng .actvty .conducted .on .a .permanent .or .temporary .racetrack .or .race-
            course;
                                                    12
3 . . to .a .covered auto for .whch .nsurance:
 .    a . . s .afforded .under .a .nuclear .energy .lablty .nsurance .contract; .or
 .            .
      b . . would .be .afforded .under .a .nuclear .energy .lablty .nsurance .contract .but .for .
             ts .termnaton .upon .exhauston .of .ts .lmt .of .lablty;
4 . . to .a .traler; .or
      to .
5 . .  . any .motor .vehcle .owned by .you .or .a .relative .f .unnsured .motorst .coverage .or .
      undernsured .motorst .coverage, .as .the .case .may .be, .has .not .been .purchased .for .
      that .motor .vehcle .

LIMITS OF LIABILITY

The .lmt .of .lablty .shown .on .the .declarations page .for .Unnsured .Motorst .Coverage .
or . Undernsured . Motorst . Coverage, . as . the . case . may . be, . s . the . most . we . wll . pay .
regardless .of .the .number .of:
1 . . clams .made;
2 . .  .
      covered autos, .but .only .wth .respect .to .insured persons .other .than .you .or .a .
      relative . .However, .coverage .for .more .than .one .covered .auto under .ths .polcy .
      may .not .be .stacked .or .combned .together .for .bodily injury .sustaned .by .you or .a .
      relative .whle .occupying a .motor .vehcle .other .than .a .covered auto;
3 . . insured persons; .
4 . . lawsuts .brought;
5 . . vehcles .nvolved .n .the .accdent; .or
      premums .pad, .but .only .wth .respect .to .insured persons .other .than .you .or .a .
6 . .  .
      relative .

When .you or .a .relative .sustan .damages .covered .under .ths .Part .III .whle .occupying
a .covered auto, .the .most .that .may .be .recovered .as .benefits .under .each .applcable .
unnsured .motorst .coverage .or .undernsured .motorst .coverage .s .the .lmt .of .lablty .
applcable .to .that .covered auto .

When .you or .a .relative .are .not .occupying .an .auto .and .sustan .bodily injury caused .
by .the .owner or .operator .of .an .uninsured motor vehicle or .underinsured motor
vehicle, .our lmt .of .lablty .shall .not .exceed .the .lmt .of .lablty .shown .on .the .decla­
rations page .for .any .one .covered auto .

If .your .declarations page .shows .a .splt .lmt:
      the .amount .shown .for .“each .person” .for .“bodly .njury” .s .the .most .we .wll .pay .for .
1 . .  .
      all .damages .due .to .bodily injury .to .one .person; .
      subject .to .the .“each .person” .lmt, .the .amount .shown .for .“each .accdent” .for .“bodly .
2 . .  .
      njury” .s .the .most .we wll .pay .for .all .damages .due .to .bodily injury .sustaned .by .
      two .or .more .persons .n .any .one .accdent; .and
      the .
3 . .  . amount .shown .for .“property .damage” .s .the .most .we wll .pay .for .the .aggregate .
      of .all .property damage .caused .by .any .one .accdent .

The .“each .person” .lmt .of .lablty .ncludes .the .total .of .all .clams .made .for .bodily injury
to .an .insured person and .all .clams .of .others .derved .from .such .bodily injury, .n-
                                                    13
cludng, .but .not .lmted .to, .loss .of .socety, .loss .of .companonshp, .loss .of .servces, .loss .
of .consortum, .and .wrongful .death .

If . the . declarations page . shows . that . “combned . sngle . lmt” . or . “CSL” . apples, . the .
amount . shown . s . the . most . we . wll . pay . for . the . total . of . all . bodily injury . damages .
resultng .from .any .one .accdent . .However, .wthout .changng .ths .total .lmt .of .lablty, .
we wll .comply .wth .any .law .that .requres .us to .provde .any .separate .lmts .

The .lmts .of .lablty .for .bodily injury .under .ths .Part .III .wll .be .reduced .by .all .sums:
      pad .because .of .bodily injury .by .or .on .behalf .of .any .persons .or .organzatons .that .
1 . .  .
      may .be .legally .responsble; .
2 . . pad .under .Part .I .- .Lablty .To .Others; .and
      pad .or .payable .because .of .bodily injury .under .any .of .the .followng .or .smlar .laws:
3 . .  .
 .    a . . workers’ .compensaton .law; .or
 .    b . . dsablty .benefits .law .

We .wll .not .pay .under .ths .Part .III .any .expenses .pad .or .payable .under .Part .II .- .Medcal .
Payments .Coverage .

The .lmt .of .lablty .for .property damage .to .a .covered auto .s .the .lowest .of: .
1 . . the .actual .cash .value .of .the .covered auto .at .the .tme .of .the .accdent;
2 . . the .amount .necessary .to .replace .the .covered auto; .
3 . . the .amount .necessary .to .repar .the .covered auto .to .ts .pre-loss condton; .or
      the .lmt .of .lablty .shown .on .the .declarations page .for .Unnsured .Motorst .Prop-
4 . .  .
      erty .Damage .or .Undernsured .Motorst .Property .Damage, .whchever .apples .

The .applcable .lmt .of .lablty .for .property damage .under .ths .Part .III .wll .be .reduced .
by .all .sums .pad .because .of .property damage .by .or .on .behalf .of .any .persons .or .or-
ganzatons .that .may .be .legally .responsble, .ncludng, .but .not .lmted .to, .all .sums .pad .
under .Part .I .- .Lablty .To .Others .

We .shall .not .pay .for .property damage .to .the .extent .that .such .damages .are .pad .or .
payable .under .any .other .property .damage .or .physcal .damage .nsurance, .ncludng .all .
sums .pad .or .payable .under .Part .IV .- .Damage .To .A .Vehcle .

Payments .for .property damage .under .ths .Part .III .are .subject .to .the .followng .provsons:
      any .amount .payable .under .ths .Part .III .for .property damage .shall .be .subject .to .
1 . .  .
      the .applcable .deductble .shown .on .the .declarations page; .and
2 . . no .more .than .one .deductble .shall .be .appled .to .any .one .accdent .

No .one .wll .be .enttled .to .duplcate .payments .for .the .same .elements .of .damages .

If .multple .auto .polces .ssued .by .us are .n .effect .for .you, .we wll .pay .no .more .than .the .
hghest .lmt .of .lablty .for .ths .coverage .avalable .under .any .one .polcy .


                                                    14
OTHER INSURANCE

If .there .s .other .applcable .unnsured .or .undernsured .motorst .coverage, .we .wll .pay .
only .our .share .of .the .damages . .Our .share .s .the .proporton .that .our .lmt .of .lablty .
bears .to .the .total .of .all .avalable .coverage .lmts . .However, .when .you or .a .relative .are .
occupying a . motor . vehcle . other . than . a . covered auto . and . sustan . bodily injury .
covered .under .ths .Part .III, .our .coverage .shall .be .excess .to .the .coverage .applcable .to .
the .motor .vehcle .that .you or .the .relative are .occupying, .and .our total .lmt .of .lablty .
under .ths .polcy .shall .not .exceed .our .lmt .of .lablty .for .one .auto .

ARBITRATION FOR BODILY INJURY CLAIMS

If .we .and .an .insured person .cannot .agree .on:
      the .legal .lablty .of .the .operator .or .owner .of .an .uninsured motor vehicle .or un­
1 . .  .
      derinsured motor vehicle; .or
2 . . the .amount .of .the .damages .sustaned .by .the .insured person;
ths .wll .be .determned .by .arbtraton .f .we .and .the .insured person .mutually .agree .to .
arbtraton .pror .to .the .expraton .of .the .bodly .njury .statute .of .lmtatons .n .the .state .n .
whch .the .accdent .occurred .

If we .and .the .insured person .mutually .agree .to .arbtraton, .each .party .wll .select .an .
arbtrator . .The .two .arbtrators .wll .select .a .thrd . .If .the .two .arbtrators .cannot .agree .on .a .
thrd .arbtrator .wthn .30 .days, .then .on .jont .applcaton .by .the .insured person and .us, .
the .thrd .arbtrator .wll .be .apponted .by .a .court .havng .jursdcton .

Each .party .wll .pay .the .costs .and .fees .of .ts .arbtrator .and .any .other .expenses .t .ncurs . .
The .costs .and .fees .of .the .thrd .arbtrator .wll .be .shared .equally .

Unless .both .partes .agree .otherwse, .arbtraton .wll .take .place .n .the .county .n .whch .
the .insured person .resdes . .Local .rules .of .procedure .and .evdence .wll .apply .

A .decson .agreed .to .by .two .of .the .arbtrators .wll .be .bndng .wth .respect .to .a .determ-
naton .of:
      the .legal .lablty .of .the .operator .or .owner .of .an .uninsured motor vehicle .or un­
1 . .  .
      derinsured motor vehicle; .and
2 . . the .amount .of .the .damages .sustaned .by .the .insured person . .
The .arbtrators .wll .have .no .authorty .to .award .an .amount .n .excess .of .the .lmt .of .
lablty .

We .and .an .insured person may .agree .to .an .alternate .form .of .arbtraton .

ARBITRATION FOR PROPERTY DAMAGE CLAIMS

An .insured person .may .submt .a .dsputed .property damage .clam .to .arbtraton .n .
accordance .wth .South .Carolna .law .


                                                     15
                             PART IV ­ DAMAGE TO A VEHICLE

INSURING AGREEMENT ­ COLLISION COVERAGE

If .you pay .the .premum .for .ths .coverage, .we .wll .pay .for .sudden, .drect, .and .accdental .
loss .to .a:
1 . . covered auto, .ncludng .an .attached .trailer; .or
2 . . non­owned auto;
and .ts .custom parts or equipment, resultng .from .collision .

In .addton, .we wll .pay .the .reasonable .cost .to .replace .any .chld .safety .seat .damaged .
n .an .accdent .to .whch .ths .coverage .apples .

INSURING AGREEMENT ­ COMPREHENSIVE COVERAGE

If .you .pay .the .premum .for .ths .coverage, .we .wll .pay .for .sudden, .drect, .and .accdental .
loss .to .a:
1 . . covered auto, .ncludng .an .attached .trailer; .or
2 . . non­owned auto;
and .ts .custom parts or equipment, .that .s .not .caused .by .collision .

A .loss .not .caused .by .collision ncludes:
1 . . contact .wth .an .anmal .(ncludng .a .brd);
2 . . exploson .or .earthquake;
3 . . fire;
4 . . malcous .mschef .or .vandalsm;
5 . . mssles .or .fallng .objects;
6 . . rot .or .cvl .commoton; .
7 . . theft .or .larceny;
8 . . wndstorm, .hal, .water, .or .flood; .or
9 . . breakage .of .glass .not .caused .by .collision .

In .addton, .we .wll .pay .for:
      reasonable .transportaton .expenses .ncurred .by .you f .a .covered auto s .stolen; .
1 . .  .
      and .
      loss .of .use .damages .that .you .are .legally .lable .to .pay .f .a .non­owned auto .s .
2 . .  .
      stolen . .
A .combned .maxmum .of .$900, .not .exceedng .$30 .per .day, .wll .apply .to .these .addtonal .
benefits . .The .addtonal .benefit .for .transportaton .expenses .wll .not .apply .f .you .pur-
chased .Rental .Rembursement .Coverage .for .the .stolen .covered .auto .

Coverage .for .transportaton .expenses .and .loss .of .use .damages .begns .48 .hours .after .
you .report .the .theft .to .us .and .ends .the .earlest .of:
1 . . when .the .auto has .been .recovered .and .returned .to .you .or .ts .owner; .
2 . . when .the .auto has .been .recovered .and .repared;
3 . . when .the .auto has .been .replaced; .or
                                                  16
      72 .hours .after .we .make .an .offer .to .settle .the .loss .f .the .auto s .deemed .by .us to .
4 . .  .
      be .a .total .loss .

We .must .receve .wrtten .proof .of .transportaton .expenses .and .loss .of .use .damages .

INSURING AGREEMENT ­ ADDITIONAL CUSTOM PARTS
OR EQUIPMENT COVERAGE

We .wll .pay .for .sudden, .drect, .and .accdental .loss .to .custom parts or equipment on .
a .covered auto for .whch .ths .coverage .has .been .purchased . .Ths .coverage .apples .
only .f .you .have .purchased .both .Comprehensve .Coverage .and .Collson .Coverage .
for .that .covered auto and .the .loss .s .covered .under .one .of .those .coverages . .Ths .
coverage .apples .n .addton .to .any .coverage .automatcally .provded .for .custom parts
or equipment .under .Comprehensve .Coverage .or .Collson .Coverage .

INSURING AGREEMENT ­ RENTAL REIMBURSEMENT COVERAGE

We wll .remburse .rental .charges .ncurred .when .you .rent .an auto .from .a .rental .agency .
or .auto .repar .shop .due .to .a .loss .to .a .covered auto .for .whch .Rental .Rembursement .
Coverage .has .been .purchased . .Ths .coverage .apples .only .f .you .have .purchased .
both .Comprehensve .Coverage .and .Collson .Coverage .for .that .covered auto and .the .
loss .s .covered .under .one .of .those .coverages .

Addtonal .fees .or .charges .for .nsurance, .damage .wavers, .optonal .equpment, .fuel, .or .
accessores .are .not .covered .

Ths .coverage .s .lmted .to .the .each .day .lmt .shown .on .the .declarations page for a .
maxmum .of .30 .days .

If .Rental .Rembursement .Coverage .apples, .no .other .coverage .under .ths .polcy .for .
rental .expenses .wll .apply .

Rental .charges .wll .be .rembursed .begnnng:
1 . . when .the .covered auto .cannot .be .drven .due .to .a .loss; .or
      f .
2 . .  . the .covered auto .can .be .drven, .when .you .delver .the .covered auto .to .an .auto .
      repar .shop .or .one .of .our .Clams .Servce .Centers .for .repars .due .to .the .loss;
and .endng .the .earlest .of:
1 . . when .the .covered auto .has .been .returned .to .you;
2 . . when .the .covered auto .has .been .repared; .
3 . . when .the .covered auto .has .been .replaced;
      72 .hours .after .we .make .an .offer .to .settle .the .loss .f .the .covered auto s .deemed .
4 . .  .
      by .us to .be .a .total .loss; .or
5 . . when .you ncur .30 .days .worth .of .rental .charges .

You must .provde .us .wrtten .proof .of .your .rental .charges .to .be .rembursed .


                                                  17
INSURING AGREEMENT ­ LOAN/LEASE PAYOFF COVERAGE

If .you .pay .the .premum .for .ths .coverage, and .the .covered auto for .whch .ths .coverage .
was .purchased .s .deemed .by .us .to .be .a .total .loss, .we .wll .pay, .n .addton .to .any .a-
mounts .otherwse .payable .under .ths .Part .IV, .the .dfference .between:
1 . . the .actual .cash .value .of .the .covered auto .at .the .tme .of .the .total .loss; .and
      any .greater .amount .the .owner .of .the .covered auto s .legally .oblgated .to .pay .un-
2 . .  .
      der .a .wrtten .loan .or .lease .agreement .to .whch .the .covered auto .s .subject .at .the .
      tme .of .the .total .loss, .reduced .by:
 .    a . . unpad .finance .charges .or .refunds .due .to .the .owner .for .such .charges;
 .    b . . excess .mleage .charges .or .charges .for .wear .and .tear;
 .           .
      c . . charges .for .extended .warrantes .or .refunds .due .to .the .owner .for .extended .
            warrantes;
 .           .
      d . . charges .for .credt .nsurance .or .refunds .due .to .the .owner .for .credt .nsurance;
 .    e . . past .due .payments .and .charges .for .past .due .payments; .and
 .    f . . collecton .or .repossesson .expenses .

However, .our payment .under .ths .coverage .shall .not .exceed .the .lmt .of .lablty .shown .
on .the .declarations page . .The .lmt .of .lablty .s .a .percentage .of .the .actual .cash .value .
of .the .covered auto .at .the .tme .of .the .loss .

Ths .coverage .apples .only .f .you .have .purchased .both .Comprehensve .Coverage .
and .Collson .Coverage .for .that .covered auto and .the .loss .s .covered .under .one .of .
those .coverages .

ADDITIONAL DEFINITIONS

When .used .n .ths .Part .IV:
      “Collision” .means .the .upset .of .a .vehcle .or .ts .mpact .wth .another .vehcle .or .ob-
1 . .  .
      ject .
      “Custom parts or equipment” .means .equpment, .devces, .accessores, .enhance-
2 . .  .
      ments, .and .changes, .other .than .those .that .are .offered .by .the .manufacturer .spe-
      cfically .for .that .auto model, .or .that .are .nstalled .by .the .auto dealershp .as .part .of .
      the .orgnal .sale .of .a .new .auto, .that:
 .    a . . are .permanently .nstalled .or .attached; .and
 .    b . . alter .the .appearance .or .performance .of .the .auto .
      “Mechanical parts” .means .operatonal .parts .on .a .vehcle that .wear .out .over .tme .
3 . .  .
      or .have .a .finte .useful .lfe .or .duraton .typcally .shorter .than .the .lfe .of .the .vehcle .as .
      a .whole . .Mechanical parts .do .not .nclude .external .crash .parts, .wheels, .pant, .or .
      wndshelds .and .other .glass .
      “Non­owned auto” .means .an .auto that .s .not .owned .by .or .furnshed .or .avalable .
4 . .  .
      for .the .regular .use .of .you or .a .relative whle .n .the .custody .of .or .beng .operated .
      by .you .or .a relative .wth .the .permsson .of .the .owner .of .the .auto or .the .person .n .
      lawful .possesson .of .the .auto .



                                                      18
EXCLUSIONS ­ READ THE FOLLOWING EXCLUSIONS CAREFULLY. IF AN
EXCLUSION APPLIES, COVERAGE WILL NOT BE AFFORDED UNDER THIS
PART IV.

Coverage .under .ths .Part .IV .wll .not .apply .for .loss:
       to .any .vehcle .whle .beng .used .to .carry .persons .or .property .for .compensaton .or .
1 . .  .
       a .fee, .ncludng, .but .not .lmted .to, .pckup .or .delvery .of .magaznes, .newspapers, .
       food, .or .any .other .products . .Ths .excluson .does .not .apply .to .shared-expense .car .
       pools;
       to .
2 . .  . a .non­owned auto .whle .beng .mantaned .or .used .by .a .person .whle .employed .
       or .engaged .n .any .auto business;
3 . . to .any .vehcle .resultng .from, .or .sustaned .durng .practce .or .preparaton .for:
 .             .
       a . . any .pre-arranged .or .organzed .racng, .stuntng, .speed, .or .demolton .contest .
              or .actvty; .or
 .             .
       b . . any .drvng .actvty .conducted .on .a .permanent .or .temporary .racetrack .or .race-
              course;
4 . . to .any .vehcle .for .whch .nsurance: .
 .     a . . s .afforded .under .a .nuclear .energy .lablty .nsurance .contract; .or
 .             .
       b . . would .be .afforded .under .a .nuclear .energy .lablty .nsurance .contract .but .for .
              ts .termnaton .upon .exhauston .of .ts .lmt .of .lablty;
       to .
5 . .  . any .vehcle .caused .by .an .ntentonal .act .commtted .by .or .at .the .drecton .of .you, .
       a . relative, . or . the . owner . of . a . non­owned auto, . even . f . the . actual . damage . s .
       dfferent .than .that .whch .was .ntended .or .expected;
       to .a .covered auto .whle .t .s .leased .or .rented .to .others .or .gven .n .exchange .for .
6 . .  .
       compensaton . .Ths .excluson .does .not .apply .to .the .operaton .of .a .covered auto .
       by .you .or .a .relative;
       due .to .destructon .or .confiscaton .by .governmental .or .cvl .authortes .of .any .ve-
7 . .  .
       hcle .because .you .or .any .relative engaged .n .llegal .actvtes;
8 . . to .any .vehcle .that .s .due .and .confined .to: .
 .     a . . wear .and .tear;
 .     b . . freezng;
 .     c . . mechancal, .electrcal, .or .electronc .breakdown .or .falure; .or
 .     d . . road .damage .to .tres .
 .     Ths .excluson .does .not .apply .f .the .damage .results .from .the .theft .of .a .vehcle;
       to .portable .equpment, .devces, .accessores, .and .any .other .personal .effects .that .
9 . .  .
       are .not .permanently .nstalled . .Ths .ncludes, .but .s .not .lmted .to:
 .             .
       a . . tapes, .compact .dscs, .cassettes, .DVDs, .and .other .recordng .or .recorded .meda;
 .             .
       b . . any .case .or .other . contaner . desgned . for .use . n . storng .or . carryng .tapes, .
              compact .dscs, .cassettes, .DVDs, .or .other .recordng .or .recorded .meda;
 .             .
       c . . any .devce .used .for .the .detecton .or .locaton .of .radar, .laser, .or .other .speed .
              measurng .equpment .or .ts .transmssons; .and
 .             .
       d . . CB .rados, .telephones, .two-way .moble .rados, .DVD .players, .personal .com-
              puters, .personal .dgtal .assstants, .or .televsons;
10 . . to .any .vehcle .for .dmnuton .of .value;
11 . . to .any .vehcle .caused .drectly .or .ndrectly .by:
 .     a . . war .(declared .or .undeclared) .or .cvl .war;
                                                    19
 .            .
       b . . warlke .acton .by .any .mltary .force .of .any .government, .soveregn .or .other .
             authorty .usng .mltary .personnel .or .agents . .Ths .ncludes .any .acton .taken .to .
             hnder .or .defend .aganst .an .actual .or .expected .attack; .or
 .           nsurrecton, .rebellon, .revoluton, .usurped .power, .or .any .acton .taken .by .a .
       c . .  .
             governmental .authorty .to .hnder .or .defend .aganst .any .of .these .acts;
12 . . to .any .vehcle .caused .drectly .or .ndrectly .by:
 .            .
       a . . any .accdental .or .ntentonal .dscharge, .dspersal .or .release .of .radoactve, .
             nuclear, .pathogenc .or .posonous .bologcal .materal; .or
 .            .
       b . . any .ntentonal .dscharge, .dspersal .or .release .of .chemcal .or .hazardous .ma-
             teral .for .any .purpose .other .than .ts .safe .and .useful .purpose; .or
       to .any .vehcle .caused .by, .or .reasonably .expected .to .result .from, .a .crmnal .act .or .
13 . .  .
       omsson .of .you, .a .relative, .or .the .owner .of .a .non­owned auto . .Ths .excluson .
       apples .regardless .of .whether .you, .the .relative, .or .the .owner .of .the .non­owned
       auto .s .actually .charged .wth, .or .convcted .of, .a .crme . .For .purposes .of .ths .ex-
       cluson, .crmnal .acts .or .omssons .do .not .nclude .traffic .volatons .

LIMITS OF LIABILITY

      The .lmt .of .lablty .for .loss .to .a .covered auto, .non­owned auto, .or .custom parts
1 . .  .
      or equipment .s .the .lowest .of:
 .             .
      a . . the .actual .cash .value .of .the .stolen .or .damaged .property .at .the .tme .of .the .loss .
              reduced .by .the .applcable .deductble;
 .             .
      b . . . the .amount .necessary .to .replace .the .stolen .or .damaged .property .reduced .by .
              the .applcable .deductble;
 .             .
      c . . . the .amount .necessary .to .repar .the .damaged .property .to .ts .pre-loss .condton .
              reduced .by .the .applcable .deductble; .or
 .    d . . the .Stated .Amount .shown .on .the .declarations page for .that .covered auto;
 .    However, .the .most .we wll .pay .for .loss .to:
 .             .
      a . . custom parts or equipment s . $1,000 . unless . you . purchased .Addtonal .
              Custom .Parts .or .Equpment .Coverage .(“ACPE”) . .If .you purchased .ACPE, .
              the .most .we wll .pay .s .$1,000 .plus .the .amount .of .ACPE .you purchased;
              a .
      b . .  . trailer .s .the .lmt .of .lablty .shown .on .the .declarations page .for .that .trailer . .
              If .the .trailer .s .not .shown .on .the .declarations page, .the .lmt .of .lablty .s .
              $500 .
      Payments .for .loss .to .a .covered auto, .non­owned auto, .or .custom parts or
2 . .  .
      equipment are .subject .to .the .followng .provsons:
 .             .
      a . . If .coverage .apples .to .a .non­owned auto, .we .wll .provde .the .broadest .cov-
              erage .applcable .to .any .covered .auto shown .on .the .declarations page .
 .             .
      b . . If .you have .elected .a .Stated .Amount .for .a .covered auto, .the .Stated .Amount .
              s .the .most .we wll .pay .for .all .loss .to .that .covered auto, .ncludng .ts .custom
              parts or equipment .
 .             .
      c . . Coverage .for .custom parts or equipment wll .not .cause .our lmt .of .lablty .
              for .loss to .an .auto under .ths .Part .IV .to .be .ncreased .to .an .amount .n .excess .
              of .the .actual .cash .value .of .the .auto, .ncludng .ts .custom parts or equip­
              ment .

                                                     20
 .           .
      d . . In .determnng .the .amount .necessary .to .repar .damaged .property .to .ts .pre-
            loss .condton, .the .amount .to .be .pad .by .us:
 .     .            wll .
            () .  . not .exceed .the .prevalng .compettve .labor .rates .charged .n .the .area .
                    where .the .property .s .to .be .repared .and .the .cost .of .repar .or .replacement .
                    parts .and .equpment, .as .reasonably .determned .by .us; .and
 .     .            wll .be .based .on .the .cost .of .repar .or .replacement .parts .and .equpment .
            () .  .
                    whch .may .be .new, .recondtoned, .remanufactured, .or .used, .ncludng, .
                    but .not .lmted .to:
 .     .     .      (a) . orgnal .manufacturer .parts .or .equpment; .and
 .     .     .      (b) . nonorgnal .manufacturer .parts .or .equpment .
 .           .
      e . . To .determne .the .amount .necessary .to .repar .or .replace .the .damaged .property .
            as .referred .to .n .subsecton .1, .the .total .cost .of .necessary .repar .or .replacement .
            may .be .reduced .by .unrepared .pror .damage . .Unrepared .pror .damage .n-
            cludes .broken, .cracked, .or .mssng .parts; .rust; .dents; .scrapes; .gouges; .and .
            peelng .pant . .The .reducton .for .unrepared .pror .damage .s .the .cost .of .labor, .
            parts, .and .materals .necessary .to .repar .or .replace .damage, .deteroraton, .
            defects, .or .wear .and .tear .on .exteror .body .parts, .wndshelds .and .other .glass, .
            wheels, .and .pant, .that .exsted .pror .to .the .accdent .and .that .s .elmnated .as .
            a .result .of .the .repar .or .replacement .of .property .damaged .n .the .loss .
 .           .
      f . . To .determne .the .amount .necessary .to .repar .or .replace .the .damaged .property .
            as .referred .to .n .subsecton .1, .an .adjustment .may .be .made .for .betterment .or .
            deprecaton .and .physcal .condton .on:
 .     .    () . batteres;
 .     .    () . tres;
 .     .            engnes .and .transmssons, .f .the .engne .has .greater .than .80,000 .mles; .
            () .  .
                    and
 .     .    (v) . any .other .mechanical parts that .are .nonfunctonng .or .noperatve .
            We .wll .not .make .an .adjustment .for .the .labor .costs .assocated .wth .the .re-
            placement .or .repar .of .these .parts .
 .           .
      g . . The .actual .cash .value .s .determned .by .the .market .value, .age, .and .condton .
            of .the .vehcle .at .the .tme .the .loss .occurs .
3 . . No .deductble .wll .apply .wth .respect .to .damage .to .automoble .safety .glass .
4 . . Duplcate .recovery .for .the .same .elements .of .damages .s .not .permtted .
      Any .amount .pad .or .payable .to .a .person .under .ths .Part .IV .for .property damage .
5 . .  .
      to .an .auto .shall .be .reduced .by .any .amount .pad .for .that .property damage .to .the .
      auto .under .Part .III .- .Unnsured/Undernsured .Motorst .Coverage .

PAYMENT OF LOSS

We may, .at .our opton:
1 . . pay .for .the .loss .n .money; .or
2 . . repar .or .replace .the .damaged .or .stolen .property .

At .our .expense, .we .may .return .any .recovered .stolen .property .to .you .or .to .the .address .
shown .on .the .declarations page, .wth .payment .for .any .damage .resultng .from .the .
theft . .We .may .keep .all .or .part .of .the .property .at .the .agreed .or .apprased .value .
                                                    21
We .may .settle .any .loss .wth .you .or .the .owner .or .lenholder .of .the .property .

NO BENEFIT TO BAILEE

Coverage .under .ths .Part .IV .wll .not .drectly .or .ndrectly .benefit .any .carrer .or .other .
balee .for .hre .

LOSS PAYABLE CLAUSE

Payment .under .ths .Part .IV .for .a .loss to .a .covered auto .wll .be .made .accordng .to .
your .nterest .and .the .nterest .of .any .lenholder .shown .on .the .declarations page or .
desgnated .by .you . .At .our opton, .payment .may .be .made .to .both .jontly, .or .to .ether .
separately . .Ether .way, we wll .protect .the .nterest .of .both . .However, .f .the .covered
auto s .not .a .total .loss, .we may .make .payment .to .you and .the .reparer .of .the .auto .

Protecton .of .the .lenholder’s .financal .nterest .wll .not .be .affected .by .any .act .or .omsson .
by .any .person .enttled .to .coverage .under .ths .polcy . .However, .protecton .under .ths .
clause .does .not .apply:
      n .any .case .of .converson, .embezzlement, .secreton, .or .wllful .damagng .or .de-
1 . .  .
      structon, .of .the .covered auto .by .or .at .the .drecton .of .you, .a .relative, .or .the .
      owner .of .the .covered auto; .or
      to .any .loss .caused .by, .or .reasonably .expected .to .result .from, .a .crmnal .act .or .
2 . .  .
      omsson .of .you, .a .relative, .or .the .owner .of .the .covered auto . .Ths .apples .regard-
      less .of .whether .you, .the .relative, .or .the .owner .of .the .covered auto .s .actually .
      charged .wth, .or .convcted .of, .a .crme . .For .purposes .of .ths .clause, .crmnal .acts .
      or .omssons .do .not .nclude .traffic .volatons .

If .ths .polcy .s .cancelled, .nonrenewed, .or .voded, .the .nterest .of .any .lenholder .under .
ths .agreement .wll .also .termnate .

When .we .make .payment .to .a .lenholder .for .loss .under .ths .polcy, .we .wll .be .subrogat-
ed .to .the .rghts .of .the .party .we .pay, .to .the .extent .of .our .payment . .When .we .pay .a .
lenholder .for .a .loss .for .whch .you .are .not .covered, .we .are .enttled .to .the .lenholder’s .
rght .of .recovery .aganst .you .to .the .extent .of .our .payment . .Our rght .to .subrogaton .wll .
not .mpar .the .lenholder’s .rght .to .recover .the .full .amount .of .ts .clam .

OTHER SOURCES OF RECOVERY

If .other .sources .of .recovery .also .cover .the .loss, .we .wll .pay .only .our .share .of .the .loss . .
Our .share .s .the .proporton .that .our .lmt .of .lablty .bears .to .the .total .of .all .applcable .
lmts . .However, .any .nsurance .we .provde .for .a .non­owned .auto, or .trailer .not .shown .
on .the .declarations page, .wll .be .excess .over .any .other .collectble .source .of .recovery .
ncludng, .but .not .lmted .to:
1 . . any .coverage .provded .by .the .owner .of .the .non­owned auto .or .trailer;
2 . . any .other .applcable .physcal .damage .nsurance; .and .
3 . . any .other .source .of .recovery .applcable .to .the .loss .
                                                     22
APPRAISAL

If .we .cannot .agree .wth .you .on .the .amount .of .a .loss, .then .we .or .you .may .demand .an .
apprasal .of .the .loss . .Wthn .30 .days .of .any .demand .for .an .apprasal, .each .party .shall .
appont .a .competent .and .mpartal .appraser .and .shall .notfy .the .other .party .of .that .
appraser’s .dentty . .The .apprasers .wll .determne .the .amount .of .loss . .If .they .fal .to .
agree, .the .dsagreement .wll .be .submtted .to .a .qualfied .and .mpartal .umpre .chosen .
by .the .apprasers . .If .the .two .apprasers .are .unable .to .agree .upon .an .umpre .wthn .15 .
days, .we .or .you .may .request .that .a .judge .of .a .court .of .record, .n .the .county .where .you
resde, .select .an .umpre . .The .apprasers .and .umpre .wll .determne .the .amount .of .loss . .
The .amount .of .loss .agreed .to .by .both .apprasers, .or .by .one .appraser .and .the .umpre, .
wll .be .bndng . .You .wll .pay .your .appraser’s .fees .and .expenses . .We .wll .pay .our .
appraser’s .fees .and .expenses . .All .other .expenses .of .the .apprasal, .ncludng .payment .
of .the .umpre .f .one .s .selected, .wll .be .shared .equally .between .us and .you . .Nether .
we .nor .you .wave .any .rghts .under .ths .polcy .by .agreeng .to .an .apprasal .

                    PART V ­ ROADSIDE ASSISTANCE COVERAGE

INSURING AGREEMENT

If .you .pay .the .premum .for .ths .coverage, .we wll .pay .for .our .authorzed .servce .repre-
sentatve .to .provde .the .followng .servces .when .necessary .due .to .a .covered emer­
gency:
1 . . towng .of .a covered disabled auto to .the .nearest .qualfied .repar .faclty; .and
2 . . labor .on .a .covered disabled auto at .the .place .of .dsablement .

If .a .covered disabled auto s .towed .to .any .place .other .than .the .nearest .qualfied .re-
par .faclty, .you wll .be .responsble .for .any .addtonal .charges .ncurred .

ADDITIONAL DEFINITIONS

When .used .n .ths .Part .V:
      “Covered disabled auto” .means .a .covered auto for .whch .ths .coverage .has .
1 . .  .
      been .purchased .that .sustans .a .covered emergency .
2 . . “Covered emergency” .means .a .dsablement .that .s .a .result .of:
 .    a . . mechancal .or .electrcal .breakdown;
 .    b . . battery .falure;
 .    c . . nsufficent .supply .of .fuel, .ol, .water, .or .other .flud;
 .    d . . flat .tre;
 .    e . . lock-out; .or
 .           .
      f . . entrapment .n .snow, .mud, .water, .or .sand, .wthn .100 .feet .of .a .road .or .hgh-
            way .




                                                  23
EXCLUSIONS ­ READ THE FOLLOWING EXCLUSIONS CAREFULLY. IF AN
EXCLUSION APPLIES, COVERAGE WILL NOT BE AFFORDED UNDER THIS
PART V.

Coverage .under .ths .Part .V .wll .not .apply .to:
       the .cost .of .purchasng .parts, .flud, .lubrcants, .fuel, .or .replacement .keys, .or .the .
1 . .  .
       labor .to .make .replacement .keys; .
2 . . nstallaton .of .products .or .materal .not .related .to .the .dsablement;
3 . . labor .not .related .to .the .dsablement;
       labor .on .a .covered disabled auto for .any .tme .perod .n .excess .of .60 .mnutes .per .
4 . .  .
       dsablement;
       towng .or .storage .related .to .mpoundment, .abandonment, .llegal .parkng, .or .other .
5 . .  .
       volatons .of .law;
6 . . assstance .wth .jacks, .levelers, .arbags, .or .awnngs;
7 . . towng .from .a .servce .staton, .garage, .or .repar .shop;
8 . . labor .or .repar .work .performed .at .a .servce .staton, .garage, .or .repar .shop;
9 . . auto .storage .charges;
10 . . a .second .servce .call .or .tow .for .a .sngle .dsablement;
       dsablement .that .occurs .on .roads .not .regularly .mantaned, .sand .beaches, .open .
11 . .  .
       fields, .or .areas .desgnated .as .not .passable .due .to .constructon, .weather, .or .earth .
       movement;
12 . . mountng .or .removng .of .snow .tres .or .chans;
13 . . tre .repar;
       repeated .servce .calls .for .a covered disabled auto .n .need .of .routne .mantenance .
14 . .  .
       or .repar;
       dsablement .that .results .from .an .ntentonal .or .wllful .act .or .acton .by .you, .a .rela­
15 . .  .
       tive, or .the .operator .of .a .covered disabled auto; .or
16 . . a .traler .

UNAUTHORIZED SERVICE PROVIDER

When .servce .s .rendered .by .a .provder .n .the .busness .of .provdng .roadsde .asss-
tance .and .towng .servces, .other .than .one .of .our .authorzed .servce .representatves, .
we .wll .pay .only .reasonable .charges, .as .determned .by .us, .for:
1 . . towng .of .a covered disabled auto to .the .nearest .qualfied .repar .faclty; .and
2 . . labor .on .a .covered disabled auto at .the .place .of .dsablement;
whch .s .necessary .due .to .a .covered emergency .

OTHER INSURANCE

Any .coverage .provded .under .ths .Part .V .for .servce .rendered .by .an .unauthorzed .ser-
vce .provder .wll .be .excess .over .any .other .collectble .nsurance .or .towng .protecton .
coverage .




                                                   24
               PART VI ­ .DUTIES IN CASE OF AN ACCIDENT OR LOSS

For .coverage .to .apply .under .ths .polcy, .you .or .the .person .seekng .coverage .must .
promptly .report .each .accdent .or .loss .even .f .you .or .the .person .seekng .coverage .s .
not .at .fault . .You .or .the .person .seekng .coverage .must .provde .us .wth .all .accdent .or .
loss .nformaton .ncludng .tme, .place, .and .how .the .accdent .or .loss .happened . .You .or .
the .person .seekng .coverage .must .also .obtan .and .provde .us .the .names .and .address-
es .of .all .persons .nvolved .n .the .accdent .or .loss, .the .names .and .addresses .of .any .wt-
nesses, .and .the .lcense .plate .numbers .of .the .vehcles .nvolved .

If .you .or .the .person .seekng .coverage .cannot .dentfy .the .owner .or .operator .of .a .ve-
hcle .nvolved .n .the .accdent, .or .f .theft .or .vandalsm .has .occurred, .you .or .the .person .
seekng .coverage .must .notfy .the .polce .wthn .24 .hours .or .as .soon .as .practcable .

A .person .seekng .coverage .must:
1 . . cooperate .wth .us .n .any .matter .concernng .a .clam .or .lawsut;
2 . . provde .any .wrtten .proof .of .loss .we .may .reasonably .requre;
      allow .us .to .take .sgned .and .recorded .statements, .ncludng .sworn .statements .and .
3 . .  .
      examnatons .under .oath, .whch .we .may .conduct .outsde .the .presence .of .you .or .
      any .other .person .seekng .coverage, .and .answer .all .reasonable .questons .we .may .
      ask .as .often .as .we .may .reasonably .requre;
      promptly .call .to .notfy .us about .any .clam .or .lawsut .and .send .us .any .and .all .legal .
4 . .  .
      papers .relatng .to .the .clam .or .sut;
5 . . attend .hearngs .and .trals .as .we .requre;
      take . reasonable . steps . after . a . loss . to . protect . the . covered auto, . or . any . other .
6 . .  .
      vehcle .for .whch .coverage .s .sought, .from .further .loss . .We .wll .pay .reasonable .
      expenses .ncurred .n .provdng .that .protecton . .If .falure .to .provde .such .protecton .
      results .n .further .loss, .any .addtonal .damages .wll .not .be .covered .under .ths .pol-
      cy;
      allow .us .to .have .the .damaged .covered auto, .or .any .other .damaged .vehcle .for .
7 . .  .
      whch .coverage .s .sought, .nspected .and .apprased .before .ts .repar .or .dsposal;
      submt .to .medcal .examnatons .at .our .expense .by .doctors .we .select .as .often .as .
8 . .  .
      we .may .reasonably .requre; .and
9 . . authorze .us .to .obtan .medcal .and .other .records .

                              PART VII ­ GENERAL PROVISIONS

POLICY PERIOD AND TERRITORY

Ths . polcy . apples . only . to . accdents . and . losses . occurrng . durng . the . polcy . perod .
shown .on .the .declarations page .and .that .occur .wthn .a .state, .terrtory, .or .possesson .
of .the .Unted .States .of .Amerca, .or .a .provnce .or .terrtory .of .Canada, .or .whle .a .covered
auto .s .beng .transported .between .ther .ports .



                                                    25
CHANGES

Ths .polcy .contract, .your .nsurance .applcaton .(whch .s .made .a .part .of .ths .polcy .as .
f .attached .hereto), .the .declarations page, .and .all .endorsements .to .ths .polcy .ssued .
by us, contan .all .the .agreements .between .you .and .us . .Subject .to .the .followng, .the .
terms .of .ths .polcy .may .not .be .changed .or .waved .except .by .an .endorsement .ssued .
by .us .

The .premum .for .ths .polcy .s .based .on .nformaton .we .receved .from .you .and .other .
sources . .You .agree .to .cooperate .wth .us .n .determnng .f .ths .nformaton .s .correct .
and .complete, .and .to .notfy .us .f .t .changes .durng .the .polcy .perod . .If .ths .nformaton .
s .ncorrect, .ncomplete, .or .changes .durng .the .polcy .perod, .you agree .that .we .may .
adjust .your .premum .accordngly . .Changes .that .may .result .n .a .premum .adjustment .
are .contaned .n .our rates .and .rules . .These .nclude, .but .are .not .lmted .to, you .or .a .
relative .obtanng .a .drver’s .lcense .or .operator’s .permt, .or .changes .n:
1 . . the .number, .type, .or .use .classficaton .of .covered autos;
2 . . operators .usng .covered autos;
3 . . an .operator’s .martal .status;
4 . . the .place .of .prncpal .garagng .of .any .covered auto;
5 . . coverage, .deductbles, .or .lmts .of .lablty; .or
6 . . ratng .terrtory .or .dscount .elgblty .

The .coverage .provded .n .your polcy .may .be .changed .only .by .the .ssuance .of .a .new .
polcy .or .an .endorsement .by .us . .However, .f .durng .the .polcy .perod .we broaden .any .
coverage .afforded .under .the .current .edton .of .your polcy .wthout .addtonal .premum .
charge, .that .change .wll .automatcally .apply .to .your polcy .as .of .the .date .the .coverage .
change .s .mplemented .n .your .state .

If .you .ask .us .to .delete .a .vehcle .from .ths .polcy, .no .coverage .wll .apply .to .that .vehcle .
as .of .the .date .and .tme .you .ask .us .to .delete .t .

DUTY TO REPORT CHANGES

You .must .promptly .notfy .us when:
1 . . your .malng .or .resdence .address .changes;
2 . . the .prncpal .garagng .address .for .a .covered auto .changes;
      there .s .a .change .wth .respect .to .the .resdents .n .your household .or .the .persons .
3 . .  .
      who .regularly .operate .a .covered auto;
4 . . an .operator’s .martal .status .changes; .or
5 . . you .or .a .relative .obtan .a .drver’s .lcense .or .operator’s .permt .

SETTLEMENT OF CLAIMS

We .may .use .estmatng, .apprasal, .or .njury .evaluaton .systems .to .assst .us .n .adjust-
ng .clams .under .ths .polcy .and .to .assst .us .n .determnng .the .amount .of .damages, .
expenses, .or .loss .payable .under .ths .polcy . .Such .systems .may .be .developed .by .us .
                                                    26
or .a .thrd .party .and .may .nclude .computer .software, .databases, .and .specalzed .tech-
nology .

TERMS OF POLICY CONFORMED TO STATUTES

If .any .provson .of .ths .polcy .fals .to .conform .to .the .statutes .of .the .state .lsted .on .your .
applcaton .as .your resdence, .the .provson .shall .be .deemed .amended .to .conform .to .
such .statutes . .All .other .provsons .shall .be .gven .full .force .and .effect . .Any .dsputes .as .
to .the .coverages .provded .or .the .provsons .of .ths .polcy .shall .be .governed .by .the .law .
of .the .state .lsted .on .your applcaton .as .your .resdence .

TRANSFER

Ths .polcy .may .not .be .transferred .to .another .person .wthout .our .wrtten .consent . .How-
ever, .f .a .named .nsured .shown .on .the .declarations page des, .ths .polcy .wll .provde .
coverage .untl .the .end .of .the .polcy .perod .for .the .legal .representatve .of .the .named .
nsured, .whle .actng .as .such, .and .for .persons .covered .under .ths .polcy .on .the .date .of .
the .named .nsured’s .death .

FRAUD OR MISREPRESENTATION

Ths .polcy .was .ssued .n .relance .upon .the .nformaton .provded .on .your nsurance .
applcaton . .We .may .vod .ths .polcy .at .any .tme, .ncludng .after .the .occurrence .of .an .
accdent .or .loss, .f .you:
      made .ncorrect .statements .or .representatons .to .us wth .regard .to .any .materal .
1 . .  .
      fact .or .crcumstance;
2 . . concealed .or .msrepresented .any .materal .fact .or .crcumstance; .or
3 . . engaged .n .fraudulent .conduct;
at .the .tme .of .applcaton . .Ths .means .that .we .wll .not .be .lable .for .any .clams .or .dam-
ages .that .would .otherwse .be .covered .unless .we .have .certfied .ths .polcy .as .proof .of .
financal .responsblty . .If .we .have .certfied .ths .polcy .as .proof .of .financal .responsbl-
ty, .nothng .n .ths .provson .shall .affect .coverage .under .Part .I .- .Lablty .To .Others .up .to .
the .mnmum .lmt .mandated .by .the .motor .vehcle .financal .responsblty .law .of .South .
Carolna .for .an .accdent .that .occurs .before .we .notfy .the .named .nsured .that .the .polcy .
s .vod . .If .we .vod .ths .polcy, .you .must .remburse .us .f .we make .a .payment .

We may .deny .coverage .for .an .accdent .or .loss .f .you .or .a .person .seekng .coverage .
has . knowngly . concealed . or . msrepresented . any . materal . fact . or . crcumstance, . or .
engaged .n .fraudulent .conduct, .n .connecton .wth .the .presentaton .or .settlement .of .a .
clam .

PAYMENT OF PREMIUM AND FEES

If .your .ntal .premum .payment .s .by .check, .draft, .electronc .funds .transfer, .or .smlar .
form .of .remttance, .coverage .under .ths .polcy .s .condtoned .on .payment .to .us .by .the .
financal .nsttuton . .If .the .financal .nsttuton .upon .presentment .does .not .honor .the .
                                                     27
check, .draft, .electronc .funds .transfer, .or .smlar .form .of .remttance, .ths .polcy .may, .at .
our .opton, .be .cancelled .from .ts .ncepton .by .notce .of .cancellaton .or .rescsson . .Ths .
means .we wll .not .be .lable .under .ths .polcy .for .any .clams .or .damages .that .would .
otherwse .be .covered .f .the .check, .draft, .electronc .funds .transfer, .or .smlar .form .of .
remttance .had .been .honored .by .the .financal .nsttuton . .Any .acton .by .us .to .present .
the . remttance . for . payment . more . than . once . shall . not . affect . our . rght . to . vod . ths .
polcy .

In .addton .to .premum, .fees .may .be .charged .on .your .polcy . .We .may .charge .fees .for .
nstallment .payments, .late .payments, .and .other .transactons . .Payments .made .on .
your .polcy .wll .be .appled .first .to .fees, .then .to .premum .due .

CANCELLATION

You .may .cancel .ths .polcy .durng .the .polcy .perod .by .callng .or .wrtng .us .and .statng .
the .future .date .you .wsh .the .cancellaton .to .be .effectve .

We .may .cancel .ths .polcy .durng .the .polcy .perod .by .malng .a .notce .of .cancellaton .
to .the .named .nsured .shown .on .the .declarations page .at .the .last .known .address .
appearng .n .our .records, .statng .the .specfic .reason .for .cancellaton . .Notce .wll .be .
maled .at .least .15 .days .before .the .date .of .cancellaton .

We .may .cancel .ths .polcy .for .any .of .the .followng .reasons .wthn .the .first .60 .days .of .
the .ntal .polcy .perod:
      a .premum .payment .by .check, .draft, .electronc .funds .transfer, .or .smlar .form .of .
1 . .  .
      remttance .s .not .honored .upon .presentment;
2 . .  .
      you .produce .proof .that .you .have .sold .or .otherwse .dsposed .of .a .covered auto, .
      or .surrendered .ts .tags .and .regstraton;
3 . .  .
      you .have .secured .another .polcy .that .satsfies .the .financal .responsblty .laws .of .
      the .State .of .South .Carolna; .or
4 . . you .fal .to .pay .when .due:
 .    a . . the .premum .for .the .polcy;
 .    b . . an .nstallment .of .the .premum; .or
 .    c . . an .nstallment .payment .under .a .premum .servce .contract .

After .the .polcy .has .been .n .effect .for .more .than .60 .days, .but .before .the .polcy .has .
been .n .effect .for .more .than .90 .days, .we .may .cancel .ths .polcy .for .any .reason .

After .ths .polcy .s .n .effect .for .more .than .90 .days, .or .f .ths .s .a .renewal .or .contnuaton .
polcy, .we .may .cancel .only .for .one .or .more .of .the .followng .reasons:
1 . . nonpayment .of .premum;
      loss .of .drvng .prvleges .through .suspenson .or .revocaton .of .an .operator’s .lcense .
2 . .  .
      ssued .to .you, .any .drver .n .your .household, .or .any .regular .operator .of .a .covered
      auto; .or
3 . . any .other .reason .permtted .by .law .


                                                      28
Proof .of .malng .wll .be .sufficent .proof .of .notce . .If .ths .polcy .s .cancelled, .coverage .wll .
not .be .provded .as .of .the .effectve .date .and .tme .shown .n .the .notce .of .cancellaton . .
For .purposes .of .cancellaton, .ths .polcy .s .nether .severable .nor .dvsble . .Any .cancella-
ton .wll .be .effectve .for .all .coverages .for .all .persons .and .all .vehcles .

CANCELLATION REFUND

Upon .cancellaton, .you .may .be .enttled .to .a .premum .refund . .However, .our .makng .or .
offerng .of .a .refund .s .not .a .condton .of .cancellaton .

If .ths .polcy .s .cancelled, .any .refund .due .wll .be .computed .on .a .daly .pro-rata .bass . .
However, .f .ths .polcy .s .cancelled .at .your .request .or .f .cancellaton .s .for .nonpayment .
of .premum, .any .refund .due .wll .be .computed .on .a .90% .of .a .daly .pro-rata .bass . .Ths .
s .a .daly, .accelerated .method .of .calculatng .short-rate .earned .premum .on .cancellatons . .
Earned .premum .s .calculated .on .a .daly .bass . .We .wll .supply .a .copy .of .the .table .to .
you .on .request .

When . you . renew . ths . polcy, . we . wll . wave . our . rght . under . the . polcy . to . calculate .
cancellaton .refunds .on .a .90% .of .a .daly .pro-rata .bass; .nstead, .any .refund .of .premum .
followng .a .cancellaton .that .may .apply .to .the .renewal .polcy .wll .be .calculated .on .a .
daly .pro-rata .bass .

NONRENEWAL

If .nether .we .nor .one .of .our .affilates .offers .to .renew .or .contnue .ths .polcy, .we .wll .mal .
notce .of .nonrenewal .statng .the .specfic .reason .for .nonrenewal .to .the .named .nsured .
shown .on .the .declarations page .at .the .last .known .address .appearng .n .our .records . .
Proof .of .malng .wll .be .sufficent .proof .of .notce . .Notce .wll .be .maled .at .least .15 .days .
before .the .end .of .the .polcy .perod .

AUTOMATIC TERMINATION

If .we .or .an .affilate .offers .to .renew .or .contnue .ths .polcy .and .you .or .your .representatve .
does .not .accept, .ths .polcy .wll .automatcally .termnate .at .the .end .of .the .current .polcy .
perod . .Falure .to .pay .the .requred .renewal .or .contnuaton .premum .when .due .wll .
mean .that .you .have .not .accepted .our .offer .

If .you .obtan .other .nsurance .on .a .covered auto, .any .smlar .nsurance .provded .by .
ths .polcy .wll .termnate .as .to .that .covered auto .on .the .effectve .date .of .the .other .
nsurance .

If .a .covered auto .s .sold .or .transferred .to .someone .other .than .you or .a .relative, .any .
nsurance .provded .by .ths .polcy .wll .termnate .as .to .that .covered auto on .the .effectve .
date .of .the .sale .or .transfer .



                                                      29
LEGAL ACTION AGAINST US

We .may .not .be .sued .unless .there .s .full .complance .wth .all .the .terms .of .ths .polcy .

We .may .not .be .sued .for .payment .under .Part .I .- .Lablty .To .Others .untl .the .oblgaton .
of .an .nsured .person .under .Part .I .to .pay .s .finally .determned .ether .by .judgment .after .
tral .aganst .that .person .or .by .wrtten .agreement .of .the .nsured .person, .the .clamant, .
and .us . .No .one .wll .have .any .rght .to .make .us .a .party .to .a .lawsut .to .determne .the .
lablty .of .an nsured .person .

If .we retan .salvage, .we .have .no .duty .to .preserve .or .otherwse .retan .the .salvage .for .
any .purpose, .ncludng .evdence .for .any .cvl .or .crmnal .proceedng .

OUR RIGHTS TO RECOVER PAYMENT

We .are .enttled .to .the .rghts .of .recovery .that .the .nsured .person to .whom .payment .was .
made .has .aganst .another, .to .the .extent .of .our .payment . .That .nsured .person .may .be .
requred .to .sgn .documents .related .to .the .recovery .and .must .do .whatever .else .we
requre .to .help .us .exercse .those .recovery .rghts, .and .do .nothng .after .an .accdent .or .
loss .to .prejudce .those .rghts .

However, .we .may .not .assert .rghts .of .recovery:
1 . . for .amounts .pad .as .Undernsured .Motorst .Coverage .benefits; .or
2 . . for .amounts .pad .as .Medcal .Payments .Coverage .benefits .

When .an nsured .person .has .been .pad .by .us .and .also .recovers .from .another, .the .
amount .recovered .wll .be .held .by .the .nsured .person .n .trust .for .us .and .rembursed .to .
us .to .the .extent .of .our .payment . .If .we are .not .rembursed, .we .may .pursue .recovery .of .
that .amount .drectly .aganst .that .nsured .person .

If .an .nsured .person .recovers .from .another .wthout .our .wrtten .consent, .the .nsured .
person’s .rght .to .payment .under .any .affected .coverage .wll .no .longer .exst .

If .we .elect .to .exercse .our .rghts .of .recovery .aganst .another, .we wll .also .attempt .to .
recover .any .deductble .ncurred .by .an .nsured .person .under .ths .polcy .unless .we are .
specfically .nstructed .by .that .person .not .to .pursue .the .deductble . .We .have .no .oblga-
ton .to .pursue .recovery .aganst .another .for .any .loss .not .covered .by .ths .polcy .

We .reserve .the .rght .to .compromse .or .settle .the .deductble .and .property .damage
clams .aganst .the .responsble .partes .for .less .than .the .full .amount . .We .also .reserve .
the .rght .to .ncur .reasonable .expenses .and .attorney .fees .n .pursut .of .the .recovery .

If .the .total .recovery .s .less .than .the .total .of .our payment .and .the .deductble, .we .wll .
reduce .rembursement .of .the .deductble .based .on .the .proporton .that .the .actual .re-
covery .bears .to .the .total .of .our .payment .and .the .deductble . .A .proportonate .share .


                                                   30
of .collecton .expenses .and .attorney .fees .ncurred .n .connecton .wth .these .recovery .
efforts .wll .also .reduce .rembursement .of .the .deductble .

These .provsons .wll .be .appled .n .accordance .wth .state .law .

JOINT AND INDIVIDUAL INTERESTS

If .there .s .more .than .one .named .nsured .on .ths .polcy, .any .named .nsured .may .cancel .
or .change .ths .polcy . .The .acton .of .one .named .nsured .wll .be .bndng .on .all .persons .
provded .coverage .under .ths .polcy .

BANKRUPTCY

The .bankruptcy .or .nsolvency .of .an .nsured .person .wll .not .releve .us .of .any .oblgatons .
under .ths .polcy .




                                                  31

				
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